September 6, 2005
On August 29, 2005, Hurricane Katrina hit the coast of Louisiana and Mississippi, causing widespread power outages and catastrophic damage to the Gulf South region including portions of Entergy Corporation's (NYSE: ETR) service territory. Entergy New Orleans, Entergy Louisiana, Entergy Mississippi, and the Louisiana portion of Entergy Gulf States each has sustained significant damage to distribution and transmission facilities. In addition, several fossil units located in the New Orleans area were flooded. In total, these four operating companies had approximately 1.1 million customers without power immediately following the storm.
Entergy anticipates that this event will influence the financial results of Entergy Corporation and of these operating companies although estimates of the effects are not available at this time. For example:
Entergy Corporation believes it has sufficient liquidity to meet its current obligations and to fund its restoration efforts from a combination of cash on hand and its $2 billion revolver. The operating companies have authority to affect inter-company borrowing through the Entergy System money pool, and Entergy believes it can obtain authorizations from the Securities and Exchange Commission and other regulatory bodies to ensure funding is available at each of its subsidiaries as is necessary.
Until near-term estimates of revenue and expenditure effects are available, however, Entergy is unable to affirm previously-issued consolidated as-reported and operational 2005 earnings per share guidance of $4.60 to $4.85 per share for Entergy Corporation. In addition, Entergy is unable to affirm its 8-10% earnings growth aspiration for 2006 and it expects to revise previously disclosed estimates of cash flow and cash available to reflect revenue, cost and recovery outcomes when they can be more accurately estimated. Finally, Entergy is able to affirm that its $1.5 billion share repurchase program remains in place, even though the timing of repurchases under this program may be temporarily delayed.
Over the long term, Entergy continues to aspire to deliver earnings per share growth in the range of 5-6% through a combination of intrinsic growth and capital deployment. Entergy will continue to evaluate and consider multiple alternatives for capital deployment, including investment, share repurchases and dividend increases.
Entergy Corporation will conduct a teleconference with investors on Tuesday, September 6, 2005 at 10:00 a.m. CDT to discuss this investor news release. The teleconference may be accessed by either dialing 719-457-2730, confirmation code 4901346 no more than 15 minutes prior to the start time or by visiting www.entergy.com/webcasts. A replay of the teleconference will be available through September 13, 2005 by dialing 719-457-0820, confirmation code 4901346.
Entergy's online address is www.entergy.com
In this release and from time to time, Entergy makes statements concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Except to the extent required by federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements involve a number of risks and uncertainties, and there are factors that could cause actual results to differ materially from those expressed or implied in these statements. Some of those factors include, but are not limited to: resolution of pending and future rate cases and other proceedings at local and federal regulatory agencies, Entergy's ability to manage its operation and maintenance costs, particularly at its non-utility nuclear generating facilities, the performance of Entergy's generating plants, and particularly the capacity factor at its nuclear generating facilities, prices for power generated by Entergy's unregulated generating facilities, and the prices and availability of power Entergy must purchase for its utility customers, uncertainty regarding establishment of sites for spent nuclear fuel storage and disposal, Entergy's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, changes in the financial markets, particularly those affecting the availability of capital and Entergy's ability to refinance existing debt, execute its share repurchase program, and fund investments and acquisitions, actions of rating agencies, including changes in the ratings of debt and preferred stock, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, changes in utility regulation and in regulation of the nuclear industry, the success of Entergy's strategies to reduce tax payments, and the effects of litigation and weather, including Entergy's efforts to remediate the effects of Hurricane Katrina.
Entergy Investor Relations personnel have established temporary contact information as follows: